- The pair’s upside momentum fades around 1.1640/50.
- The greenback stays under pressure following US-China trade headlines.
- ECB Forum, Draghi next of relevance in Euroland.
After recording fresh daily highs in the 1.1640/50 band, EUR/USD has now given away some gains and returned to the 1.1630/20 band ahead of the opening bell in Euroland.
EUR/USD looks to Draghi, risk trends
The pair fades the positive start in a context dominated by the risk-off sentiment after President Trump hinted that more tariffs on US imports from China could be in the pipeline.
In fact, Asian markets reacted negatively after news noted Trump was seeking another $200 billion in tariffs on Chinese products, prompting the trade dispute to escalate further and opening the door for extra retaliatory measures from China.
On another front, President Draghi is expected to speak today at the ECB Forum in Sintra (Portugal), although market participants appear to have ruled out any surprises at his speech, which should be much in line with his press conference at last week’s ECB meeting.
In the data space, ECB’s P.Praet is also due to speak, whereas Housing Starts and Building Permits are due across the pond.
EUR/USD levels to watch
At the moment, the pair is losing 0.01% at 1.1622 and a breakdown of 1.1543 (low Jun.15) would target 1.1508 (2018 low May 29) en route to 1.1479 (low Jul.20 2017). On the flip side, the next hurdle aligns at 1.1644 (high Jun.19) seconded by 1.1692 (21-day sma) and finally 1.1709 (10-day sma).
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